Your car may be insured, but something much more valuable isn’t Car Tips and Tricks by Auto5097 - May 11, 20170 So! You bought a new car? Congratulations! You have ensured a good car insurance for the vehicle along with the compulsory third party cover. Great! And, you are satisfied that your car’s ‘accidental care’ expenses will not relieve your pockets too much? You are absolutely correct to think so, even if you’ve bought the insurance with depreciation factor, it’ll still reduce such costs to a great extent (say 60 – 70% coverage). Your car insurance will also take care of the injuries or loss to any third party in the accident. You have secured yourself financially, what about your family? Car insurance takes care of car related expenses, and in our case, it is compulsory by law. But have you thought about who will take care of your family financially if something happens to you? The answer is most probably no! Your family’s expenses need to continue, they’ll still have to achieve their financial goals. There is only one instrument that can ensure your family is financially protected A term insurance plan. That is because only term insurance plans offer large enough sum assured to cover your family’s living costs as well as future financial needs at a very reasonable price. For example: Assuming your household expenses are Rs. 600,000 p.a. plus you are investing for the financial goals of your children. Kid’s goals (higher education and marriage) amount to Rs. 40 Lakh in future costs for two kids. Assuming a safe return on investment of 6% your family will need approximately Rs. 1.5 crore to maintain their lifestyle and achieve all their financial goals; that is, “be financially independent.” How much will a term insurance cost? Assuming you buy a car worth Rs. 800,000 (including the electronics and accessories), your economics for the year (assuming your annual expense as Rs. 500,000) will work out to be something as shown in the table below: Benefits Car Insurance Only Term Life Insurance Insurance Premium Cost Rs. 25,000 Rs. 12,500* Sum Assured Provided Rs. 10,00,000 Rs. 1,50,00,000 * Approximate. Assuming an integrated term insurance cover of Rs. 1.5 cr. for a 30-year-old person. If you notice the highlighted benefits in the table above, you will see that the insurance for the life costs almost half of what you pay for the car’s insurance. Does it not make sense to insure your life when even your car has an insurance cover? Especially when it costs far less than the car insurance… Additional Benefits With Term Life Insurance? Some insurer like ICICI Prudential Life offer term insurance with additional benefits as mentioned below: Lumpsum payment for the treatment on discovery of a life-threatening disease (cover for critical illnesses) Lumpsum payment on contracting permanent disability to compensate loss of earning capacity (accidental benefit cover) Additional payment on death in an accident (accidental + life cover) Waiver of premium for the term life cover on contracting disability Such term insurance is simply a 360o protection against all possible risks to life, or more accurately, to your family’s financial health. How to Buy Term Insurance Online? Buying term insurance online is fairly easy process once you have finalised your insurer. Simply estimate the premium, select the benefits, and fill up the details in the online form at your convenience.